Which issue is commonly associated with an ageing population?

Which issue is commonly associated with an ageing population?

• A. Increased youth employment
• B. Strain on government funding
• C. Lower healthcare costs
• D. Higher birth rates

Answer: (B)

Demographic aging increases the burden on public finances through pensions and healthcare, because more people rely on government-supported programs while the working-age tax base may not grow as quickly. This combination creates a strain on funding for retirement benefits, long-term care, and medical services, since costs rise with age and fewer workers may be contributing at the same rate. Other options don’t fit because higher birth rates are not typical when a population is ageing; birth rates often decline. Costs for healthcare generally rise with age, not fall. And while labour market dynamics can change, the most direct and common issue tied to an ageing population is the pressure it places on government budgets to support a growing number of retirees.

Demographic aging increases the burden on public finances through pensions and healthcare, because more people rely on government-supported programs while the working-age tax base may not grow as quickly. This combination creates a strain on funding for retirement benefits, long-term care, and medical services, since costs rise with age and fewer workers may be contributing at the same rate.

Other options don’t fit because higher birth rates are not typical when a population is ageing; birth rates often decline. Costs for healthcare generally rise with age, not fall. And while labour market dynamics can change, the most direct and common issue tied to an ageing population is the pressure it places on government budgets to support a growing number of retirees.